Maintaining bullish stride, equities trading on the floor of The Nigerian Stock Exchange added another 293Bpts as it rounded up trade at 43,041.54 from 41,816.11. The mood rubbed off on all observed market indices as shown in the index movement table. Week to Date, activities is up by 1,058Bpts while 1,255Bpts had been added to market trading points in the new month.
Value gained by the market capitalization of the listed equities during today’s trading activities was N436.091 billion, same as 293Bpts above the opening value. Meanwhile, trading activities for the day produced 56 advancers and 10 lagers. NSEASI Year to Date gain is now 12.55% while the Market Capitalization Year to Date gain stood at N1.707 trillion same as 12.55% above the year’s opening value.
Nigerian Stock Exchange All Share Index is at its best start since 2014 although we saw a short pull back after hitting the 43,141 point today (being the highest high since 2014), market looks brighter and strong enough to do more highs. It is expected that, investor fear of missing out in the run will rise, thereby increasing the temptation of investing in the momentum, we are of the opinion that jumping on a running train requires heightened caution and intense calculations.
Therefore, to be on a safer side, traders should explore tools that can timely identify diversion between price and volume momentum, this will definitely inform the strength of the fund driving the market at the moment.
Aside trading by earnings expectations, another method that could be adopted by traders is to identify few equities trading below its 2014 highs. It is expected that the bullish run will start rubbing off on such equities, thus, traders could play off short profit on them. Safe Trade.